Bonds sold off sharply around the world on Friday as investors brace for persistently elevated inflation amid the ongoing energy crisis.
Oil jumped after the U.S.-China summit wrapped up without any signs that Beijing will lean on ally Iran to reopen the Strait of Hormuz.
That followed a series of U.S. debt auctions this past week that signaled tepid demand for longer-term Treasuries as fresh consumer and producer inflation data came in hotter than expected.
On Wednesday, the Treasury Department sold $25 billion of 30-year bonds at a 5% yield for the first time since 2007. Before then, no 30-year Treasury carried an interest rate above 4.75%.
It was a stark contrast from mid-February—just before the U.S.-Israeli war on Iran started—when a Treasury offering saw the highest demand ever in the history of 30-year auctions.
